4% Only Housing Tax Credits

New Information about 4% Housing Tax Credits for Use with Tax Exempt Volume Limited Bonds (4% Only)

In the state of Minnesota, there are different allocating agencies for the distribution of tax-exempt private activity bonds and 4% housing tax credits. The primary allocating agency for tax-exempt private activity bonds is Minnesota Management and Budget (MMB) and the primary allocating agency for 4% housing tax credits is Minnesota Housing.

Section 42 of the Internal Revenue Code establishes separate procedures for HTC through the issuance of tax-exempt bonds. Minnesota Housing’s Qualified Allocation Plan (QAP) is our plan for the distribution of HTC. The QAP and corresponding documents are published annually. The year in which tax-exempt bonds are first issued for the project determines which year’s QAP applies and the year credits will be allocated

Apply for Housing Tax Credits

Minnesota Housing accepts pre-applications and applications for the allocation of 2018 4% housing tax credits (42M) for projects financed with tax-exempt volume limited bonds (tax-exempt bonds) from MMB beginning in January 2018. Pre-applications and applications must be submitted in Minnesota Housing's Multifamily Customer Portal. Documents are listed for reference on the Application Resources webpage and the Tax Credit webpage.

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Technical Assistance

  • Technical assistance with a Minnesota Housing underwriter is available and strongly encouraged throughout the process. For additional information or tax credit questions, contact Summer Jefferson at summer.jefferson@state.mn.us or 651.296.9790